Possible maximum percentage return on the investor funds

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An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $50 a share at which time the investor sold the stock. If the margin requirement is 50 percent and the interest rate on borrowed funds was 6 percent, what would be the possible maximum percentage return on the investor's funds (excluding commissions)? What would have been the return if the investor had not bought the stock on margin?

Reference no: EM131453672

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